Vietnam Airlines has begun approaching aircraft leasing firms for 20 to 25 A321neos, according to people familiar with the talks. The jets under review are the 240-seat version, and the total request could reach 25 single-aisle Airbus aircraft.
The timing is not locked in. Some of the people said the schedule and details could shift with market conditions. The carrier did not respond to requests for comment.
Earlier this year, shareholders approved a medium-term plan to operate two brands - a full-service offering alongside a budget counterpart. That sets the stage for a re-entry into low-cost travel as early as next year, if the aircraft and timeline come together.
Vietnam's brisk economic growth is spurring expansion from rivals ranging from Vietjet Aviation JSC to Sun PhuQuoc Airways. Both airlines are supported by parent companies that deploy capital in the property and financial industries.
That competition is already visible in the numbers. Cirium data show Vietjet held 40% of the domestic market in October, while Vietnam Airlines had 37% and Sun PhuQuoc - launched in November last year - reached 15%.
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Vietnam Airlines first pushed into budget flying decades ago with Pacific Airlines. Subsequently, it ran as Jetstar Pacific through a Qantas Airways Ltd joint venture, and reverted to the Pacific Airlines name once Qantas exited. Pacific Airlines today runs only limited services.
A restart of a budget arm using higher-capacity A321neos could help Vietnam Airlines defend domestic share and tap demand tied to a growing economy. But watch the caveat from people close to the process: the plan and launch window could change if market conditions do. For aircraft lessors, Airbus suppliers, and Vietnam-focused travel plays, timelines and order flow are the key swing factors to track.
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